San Jose’s Police and Fire Department Retirement Plan and Federated City Employees’ Retirement System allocated a combined $37m to Crestline Investors’ Portfolio Financing Fund in 2018.

The $3.7bn police and fire fund allocated $22m while the $2.2bn city employees’ fund allocated $15m. Both were disclosed in a report from Neuberger Berman, the city’s partner in managing its private equity portfolio. The city uses Meketa Investment Group as its general consultant.

As of 30 September, the police and fire plan had $505.4m in private equity. The city employees had $427m. The bulk of those assets – $305.2m in the case of the police and fire plan and $352.1m in the case of the city employees’ plan – was held in a Northern Trust Russell 3000 Index Fund. The balance of the assets were spread among 18 funds in the police and fire plan and eight funds in the city employees plan.

At the end of the third quarter, the market value of the police and fire plan’s Crestline investment was $7.4m while the city employees’ investment was $5m.

Fort Worth, Texas-based Crestline closed the Portfolio Financing strategy in November 2018 after raising $600m in capital commitments from public and private pension funds, endowments and other institutional investors. The fund was the 10th opportunistic fund from Crestline. Together all those funds have raised more than $6bn, according to Crestline.

The Portfolio Financing fund provides custom financing to private equity managers so they can in turn provide liquidity to their LPs or provide follow-on capital to companies in their portfolios.

San Jose adds Crestline to private equity portfolio on HFM InvestHedge.